My wifes 2001 Passat was hit on Sunday. Insurance company said damage is $7000. Not sure yet if there is frame damage. She tehn told them that she also wanted to know how much they were going to pay for depreciated value since the car is now not worth as much after it is fixed then it was before the accident. They said there is no law that says we are entitled to depreciated value, and that accidents do not affect the value of your car. I know that is total bull.

What I am wanting is some resources, info about Florida law, insurance policies, etc. about owners being entitled to depreciated value.

I hope this makes sense. Thanks in advance for your help.

P.S. The only injury she sustained was a two inch cut on her left thigh from her side air bags, is that normal for side air bags to cut through skin?

 

As someone who works for a large insurance company's claims dept I can tell you that unfortunately there are no provisions for depreciated value. Is the car's value depreciated? Yes... there's a stigma associated with cars that were involved in an accident but as far as the law goes, that's all it is - a stigma... if the car is repaired properly there's no reason there should be an depreciation.

btw - not saying i agree with it, just telling you what the laws are. also, i don't remember the exact details but i *think* state farm and a few others were sued about a year ago in a midwestern state for this and lost... so there may be a precedent for overturning it? I want to say it was indiana but again, I'm not 100% on that.

 

you can claim "diminished value" from an insurance company as long as the insurance company is not your own. if the insurance company you are going through for the repairs is your own then you are not entitled to a diminished value check in almost all states. what state are you in?

 

i just found this:

http://www.collision-insight.com/news/20020528-aai.htm

you wont be getting a cent from your insurance company for the diminished value.

 

I agree, as an insurance agent I've never seen our company pay out any diminished valued money. Sorry about the accident.

 

Thanks for all your replies. It is really a bummer about diminished value becuase we all know their isn't one car dealer in america that will give you the same deal on veheicle that has never been in an accident and one that has. Anyway its just a car and in the end everyone walked away.

 

only a third party can claim diminished value in most states. like if you were hit by somebody and it turned out to be his/her fault you could claim diminished value from his/her insurance

 

Diminished value is a real thing but until there is case law for it you wont see many insurance companies paying it.

It is not recognized in Illinois and therefore not considered by insurance companies. I am not sure about other states??

Basically if State Farm gets sued enough that they start paying it then all other companies will fall in line. Just like what happened with "Aftermarket" parts they were forcing their customers to put on cars. They got sued, changed their policy language, and now most other companies dont use aftermarket parts unless the customer wants too.

Anyway, good luck, later.

 

One possible option is to sue the person that hit you (assuming that they are at fault...I just moved to FL so I dunno if it's a no-fault state or what the deal wtih that is) and not the insurance Co. If, somehow, you could prove that the guy intended to hit you, you could sue for trespass to chattels and/or conversion. Otherwise there might be a way under negligence. I'd look all this stuff up for ya but I'm only a measly 1L and don't have access to all the good stuff yet.

Insurance companys are funny because they have a sort of 'duty' to settle if the claim is below the policy maximum (in some states at least). Go find a good lawyer...you might be able to get someone who'll look at the case for free. I'd help you but it's only my first year of school so I can't do much for ya I'm afraid. Good luck man.

 

If your carrier pays for your repairs, they become subrogated to your right to sue the adverse party. However, if they do sue the at-fault driver, you may join the suit for both your deductible and the diminished value of your vehicle.

 

I appreciate all the info. I'll let you know how it goes